Can Fibre Update

Just to let you all know, at Randy's request, the Notices setting out
CanFibre's Failure to Pay under the Gas and Power Contracts have been sent
out.

I called to follow up and our fax containing both notices has been received
in its entirety by Amerisearch (the agent for CanFibre), therefore the clock
has started ticking. CanFibre has until the close of business on Wed. Aug.
16th to pay the amounts owed.

As per the terms of the Contracts, the fax has also been sent by Fedex to
Christopher Carl in Toronto.

If CanFibre does not cure the Failure to Pay by 8/16/00, Legal will get
together with Randy and Chris to set the Early Termination Date and send
further notifications.

Any questions, please call me.

Shari

(x 39477)